Homeowners Choice, Inc. (HCII)

[10 bagger]

HCII.. $4.85

The board of directors of Homeowners Choice Inc. authorized a plan to repurchase up to $3 million of the company’s common stock.

The company will buy back shares from time to time for cash over the next year, a release said. The stock will be bought on the open market, as well as in block transactions and privately negotiated deals.

The repurchase of shares is a wise use of the company’s capital and will enhance shareholder value, particularly in a low interest rate environment, Paresh Patel, chairman of the board, said in the release.

Homeowners Choice (NASDAQ: HCII), an insurance holding company headquartered in Clearwater, had more than $108 million in cash and short term investments and no significant debt on its balance sheet for Dec. 31. The company recently reported net income of $12.7 million, or $2.08 a share, on revenue of $49.5 million for 2008.